The Analytical Overview of the Main Currency Pairs on 2017.10.04

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.17304

Open: 1.17433

% chg. over the last day: +0.14

Day's range: 1.17351 – 1.17798

52 wk range: 1.0341 – 1.2069

Yesterday, the US dollar moved away from the local highs. At the moment, the technical pattern on EUR/USD is ambiguous. The price is testing the resistance level of 1.17600. Investors took a wait-and-see attitude before the release of important economic reports. We recommend opening positions from the key support and resistance levels.

News background on 2017.10.04:

- A number of statistics on business activity in the Eurozone at 11:00 (GMT+3:00);

- A preliminary report on the labor market in the US from ADP at 15:15 (GMT+3:00);

- The index of business activity in the non-manufacturing sector of the US from ISM at 17:00 (GMT+3:00).

Also, we recommend you to pay attention to the speeches of the head of the ECB Draghi and the Fed's chairman Yellen.

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is in the positive zone and continues to rise, which indicates the growth of the EUR/USD quotes.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which gives a signal to sell EUR/USD.

Trading recommendations

Support levels: 1.17000, 1.16500

Resistance levels: 1.17600, 1.18300

If the statistics from the US proves optimistic, we recommend looking for entry points to the market for opening short positions. The immediate goal for profit taking is the round level of 1.17000.

An alternative may be the growth of the EUR/USD currency pair to the level of 1.18250-1.18500.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.32712

Open: 1.32351

% chg. over the last day: -0.26

Day's range: 1.32325 – 1.32821

52 wk range: 1.1450 – 1.3618

The pound remains under pressure amid weak economic reports. In September, the index of business activity in the construction sector of the UK fell by 5.9% to 48.1. Experts expected the indicator at the level of 51.0. At the moment, the price is testing local support of 1.32400. We recommend you to pay attention to statistics on the US economy.

At 11:30 (GMT+3:00), the index of business activity in the services sector of Great Britain will be published.

The price has crossed 50 MA, which at the moment is a fairly strong dynamic resistance.

The MACD histogram does not provide accurate signals. The indicator has fixed near the 0 mark.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which sends a signal to sell GBP/USD.

Trading recommendations

Support levels: 1.32400, 1.32000

Resistance levels: 1.33000, 1.33650

If the statistics from the UK turns out to be weak, we recommend considering selling GBP/USD. The immediate goal for profit taking is the round level of 1.32000.

An alternative may be the growth of GBP/USD to 1.33300-1.33250.

When following a position, one should use a trailing stop.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.25081

Open: 1.24870

% chg. over the last day: -0.15

Day's range: 1.24568 – 1.24947

52 wk range: 1.2059 – 1.3795

At the moment, there is an ambiguous technical pattern on the USD/CAD currency pair. The trading instrument is consolidating. The key trading range is 1.24200-1.24850. Investors are waiting for additional drivers. The bearish sentiment in the oil market puts pressure on the Canadian dollar.

We recommend paying attention to the news background on the US economy.

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is located in the negative zone and below the signal line, which indicates a fall in the USD/CAD quotes.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy USD/CAD.

Trading recommendations

Support levels: 1.24200

Resistance levels: 1.24850, 1.25350

If the statistics on the US economy proves to be optimistic, we recommend considering buying USD/CAD. The target movement level is 1.25350-1.25500.

Alternatively, USD/CAD may fall to the level of 1.24200-1.24000.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 112.757

Open: 112.843

% chg. over the last day: +0.07

Day's range: 112.415 – 112.905

52 wk range: 99.53 – 118.67

Yesterday the USD/JPY currency pair kept the local offer zone at 113.100-113.250, which caused the "bullish" sentiment. At the moment, the price is testing support of 112.500. The technical pattern is ambiguous. Positions must be opened from the key levels. We recommend you to pay attention to the economic reports and the US government bonds yield.

The news background on the economy of Japan is calm today.

The signals of the indicators are different. The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is located in the negative zone and continues to decline, indicating a drop in USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which signals the purchase of USD/JPY.

Trading recommendations

Support levels: 112.500, 112.250

Resistance levels: 112.850, 113.250

If the statistics from the US turns out to be positive, we recommend you to look for entry points to the market to open long positions. The movement is tending to 113.000-113.250.

An alternative may be the fall of the USD/JPY quotations to a round level of 112.000.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.